CVP 6

Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $144 per unit. The company's annual fixed costs are $639,000. The sales manager predicts that next year's annual sales of the company's product will be 40,900 units at a price of $209 per unit. Variable costs are predicted to increase to $149 per unit, but fixed costs will remain at $639,000. What amount of income can the company expect to eam under these predicted changes? Prepare a contribution margin income statement for the next year